Business Interest Expense
Definition
- Interest incurred in the operation of your business. It is deductible as a business expense.
Synonyms
percentage, write off, operating cost, deductible expense
Related Terms and Acronyms
- Commercial Loan — Definition,
- A loan taken out by a business.
- Cost of Goods Sold (COGS) — Acronym,
- An expense that appears on a business's income statement and represents the inventory cost of the goods sold during a particular period.
- Expensing — Definition,
- Government tax law allows individuals to expense certain business activities.
- Meals and Entertainment (M&E) — Acronym,
- Deductible expenses in your business such as the cost of taking a client to a restaurant (meals) or a sporting event (entertainment). However, these expenses are only partially deductible (50 % in Canada).
- Operational Expenses (OpEx) — Abbreviation,
- Costs accruing from a business's business operations.
- Self Employed Person (SEP) — Acronym,
- A person who runs a trade or business, rather than working as an employee for someone else. You are self-employed if you are a sole proprietor or a partner working in a business. You can be an employee and self-employed at the same time if you have an independent business outside your regular employee hours. To qualify for many business tax exclusions and deductions, the enterprise must make a profit in three of five years. In most cases in order to qualify you must take and average of the last 2-3 years tax assessments.
